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Indirect tax collection during Financial Year 2020-21 (FY21) exceeded not just revised estimate but also actual collection of Financial Year 2019-20 (FY 20), Finance Ministry said on Tuesday.
“Provisional Net Indirect Tax collections (GST & Non-GST) for the Financial Year 2020-21 show growth of more than 12 per cent compared to actual Revenue Receipts in FY 2019-20. Net Indirect Tax collections represent 108.2 per cent of the Revised Estimates of ₹9.89 lakh crore of Indirect Taxes for the FY 2020-21,” a statement issued by the Ministry said.
The provisional figures for indirect tax collections (GST & non-GST) for the FY 21 showed that net revenue collections are at ₹10.71 lakh crore as compared to ₹9.54 lakh crore for the FY 20. As regards customs, net tax collections stood at ₹1.32 lakh crore during the period under consideration as against ₹1.09 lakh crore during FY 20. This shows growth of around 21 per cent.
Net Tax collections on account of Central Excise and Service Tax (Arrears) rose to ₹3.91 lakh crore from ₹2.45 lakh crore thereby registering a growth of more than 59 per cent. Though net tax collections on account of GST of the Centre (CGST+IGST+ Compensation Cess) slipped to ₹5.48 lakh from FY 20’s actual collection of ₹5.99 lakh crore, still it is higher than revised estimate of 5.15 Lakh crore Thus, the actual net GST collections is 106 per cent of total targeted collection, though these are 8 per cent lower than the last FYs collection.
The GST collections were severely affected in the first half of the financial year on account of Covid. However, in the second half, the GST collections registered a good growth and collections exceeded ₹1 lakh crore in each of the last six months. March saw an all-time high of GST collection at ₹1.24 lakh crore after very good figures in the month of January and February. Several measures taken by the Central Government helped in improving compliance in GST, the statement said.
Last Friday, the Finance Ministry announced net direct tax collection during FY 21 registered nearly 5 per cent growth over revised estimate. According to the Ministry, provisional figures showed collection at ₹9.45 lakh crore. It represented 104.46 per cent of the Revised Estimates of ₹9.05 lakh crore However, it is lower than net direct tax collection of FY 2019-20 (FY 20) which was ₹10.51 lakh crore.
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